IFSE Institute Exam CIFC Topic 11 Question 1 Discussion

Actual exam question for IFSE Institute's CIFC exam

Question #: 1
Topic #: 11

[All CIFC Questions]

Ken is a member of his employer's Defined Benefit Pension Plan (DBPP). Which of the following statements about Ken's plan is CORRECT?

AContributions to the plan do not result in a Pension Adjustment (PA) for Ken.

BThe amount Ken receives in retirement depends on the performance of the investments he has selected within the plan.

CThe amount that Ken will receive at retirement is not guaranteed.

DIncome received from the plan is eligible for pension income splitting even if Ken retires before 65.

Show Suggested Answer

Suggested Answer: D

by Natalie at Jun 15, 2025, 04:14 PM

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Theodora

5 days ago

I'm curious to know why option D is the correct answer. Seems like a good way to maximize Ken's retirement income.

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Marcelle

9 days ago

Haha, option B is a trap! In a Defined Benefit plan, the amount doesn't depend on the investment performance - that's more for a Defined Contribution plan.

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Lindsay

2 days ago

A) Contributions to the plan do not result in a Pension Adjustment (PA) for Ken.

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Francine

9 days ago

Why do you think that?

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Annett

13 days ago

I disagree, I believe it's D.

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Novella

16 days ago

I'm leaning towards option A. Contributions to a DBPP don't result in a Pension Adjustment, which is important for tax purposes.

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Kirk

21 days ago

Option C seems to be the right choice. The amount Ken receives in retirement is not guaranteed, as it depends on various factors like years of service and salary history.

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